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Hi DS,
I know the importance of protecting your employees' information, and I deeply understand how you feel about this.
Workforce has been used by lots of our QuickBooks clients and employees, so Intuit assures you that we put a high level of security to protect their information in the said portal.
With regards to your other concern, I'd recommend contacting our Workforce Support so they can check why the W-2s became available to your employees even if you unchecked the option to send the forms to them. They can ask for your account information in a more secure environment to check this. You can reach them on weekdays from 6:00 AM to 6:00 PM PT.
If you have other questions, please don't hesitate to go back to this thread.